CARRIER GLOBAL CORP (CARR)
US14448C1045 - Common Stock
Overall CARR gets a fundamental rating of 3 out of 10. We evaluated CARR against 39 industry peers in the Building Products industry. There are concerns on the financial health of CARR while its profitability can be described as average. While showing a medium growth rate, CARR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CARR had positive earnings in the past year.
CARR had a positive operating cash flow in the past year.
In the past 5 years CARR has always been profitable.
Each year in the past 5 years CARR had a positive operating cash flow.
1.2 Ratios
CARR's Return On Assets of 9.31% is fine compared to the rest of the industry. CARR outperforms 61.54% of its industry peers.
CARR has a better Return On Equity (25.47%) than 74.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.64%, CARR is doing worse than 64.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 13.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 25.47% | ||
| ROIC | 7.64% |
ROA(3y)8.01%
ROA(5y)8.27%
ROE(3y)28.56%
ROE(5y)26.48%
ROIC(3y)11.44%
ROIC(5y)10.42%
1.3 Margins
Looking at the Profit Margin, with a value of 13.07%, CARR is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
CARR's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 10.43%, CARR is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
CARR's Operating Margin has declined in the last couple of years.
CARR's Gross Margin of 27.36% is on the low side compared to the rest of the industry. CARR is outperformed by 69.23% of its industry peers.
CARR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 13.07% | ||
| GM | 27.36% |
OM growth 3Y5.72%
OM growth 5Y-2.32%
PM growth 3Y-18.69%
PM growth 5Y-15.84%
GM growth 3Y-0.47%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
CARR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CARR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CARR has less shares outstanding
Compared to 1 year ago, CARR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.91 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
CARR has a Altman-Z score of 2.91. This is in the lower half of the industry: CARR underperforms 66.67% of its industry peers.
CARR has a debt to FCF ratio of 14.85. This is a negative value and a sign of low solvency as CARR would need 14.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.85, CARR is doing worse than 82.05% of the companies in the same industry.
CARR has a Debt/Equity ratio of 0.70. This is a neutral value indicating CARR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, CARR is doing worse than 64.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.85 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.78
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.08 indicates that CARR should not have too much problems paying its short term obligations.
The Current ratio of CARR (1.08) is worse than 89.74% of its industry peers.
CARR has a Quick Ratio of 1.08. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CARR (0.82) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.31% over the past year.
CARR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.93% yearly.
Looking at the last year, CARR shows a very strong growth in Revenue. The Revenue has grown by 29.51%.
Measured over the past years, CARR shows a small growth in Revenue. The Revenue has been growing by 3.16% on average per year.
EPS 1Y (TTM)7.31%
EPS 3Y18.04%
EPS 5Y-12.93%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)29.51%
Revenue growth 3Y8.18%
Revenue growth 5Y3.16%
Sales Q2Q%4.41%
3.2 Future
CARR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
The Revenue is expected to grow by 5.39% on average over the next years.
EPS Next Y2.98%
EPS Next 2Y6.68%
EPS Next 3Y9.29%
EPS Next 5Y7.26%
Revenue Next Year4.27%
Revenue Next 2Y2.62%
Revenue Next 3Y3.36%
Revenue Next 5Y5.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.24, CARR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CARR indicates a slightly more expensive valuation: CARR is more expensive than 66.67% of the companies listed in the same industry.
CARR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 24.46, the valuation of CARR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CARR is valued a bit more expensive than the industry average as 64.10% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.82. CARR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.24 | ||
| Fwd PE | 24.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARR indicates a slightly more expensive valuation: CARR is more expensive than 64.10% of the companies listed in the same industry.
76.92% of the companies in the same industry are cheaper than CARR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.48 | ||
| EV/EBITDA | 19.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CARR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)9.15
PEG (5Y)N/A
EPS Next 2Y6.68%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.01%.
Compared to an average industry Dividend Yield of 0.94, CARR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
17.88% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP17.88%
EPS Next 2Y6.68%
EPS Next 3Y9.29%
CARRIER GLOBAL CORP
NYSE:CARR (11/21/2024, 8:17:14 PM)
Premarket: 76.01 0 (0%)76.01
+1.51 (+2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap68.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.24 | ||
| Fwd PE | 24.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)9.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 25.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.43% | ||
| PM (TTM) | 13.07% | ||
| GM | 27.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.31%
EPS 3Y18.04%
EPS 5Y
EPS Q2Q%
EPS Next Y2.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.51%
Revenue growth 3Y8.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y